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Investing.com-- Gold prices fell in Asian trade on Wednesday, remaining under pressure from improved risk appetite after U.S. President Donald Trump postponed plans to impose steep trade tariffs on the European Union.
Gold and broader metals were also pressured by a mild recovery in the dollar, which came amid some signs of stability in the Treasury market.
But bullion still remained relatively underpinned by uncertainty over U.S. trade and fiscal health, with focus on more U.S. trade deals and the progress of a divisive tax cut bill backed by Trump.
Spot gold steadied at $3,301.96 an ounce, while gold futures for August rose 0.1% to $3,331.91/oz by 01:17 ET (05:17 GMT).
Trump tariff relief boosts risk, dents haven demand for gold
Trump over the weekend said he will postpone plans to impose 50% trade tariffs on the EU to early-July.
July is also when Trump’s reciprocal tariffs against a host of major economies are set to take effect, although his recent turnaround on the EU tariffs spurred hopes that the U.S. president will not deliver on his other tariff threats.
This notion sparked outsized gains in risk-driven assets, with Wall Street indexes clocking sharp gains on Tuesday.
Strong U.S. consumer confidence data also boosted risk and dampened concerns over the U.S. economy.
Focus is now on more cues on the U.S. economy in the coming days- from a host of Federal Reserve speakers, as well as the minutes of the Fed’s latest meeting, which are due later on Wednesday.
Additionally, market focus is also on artificial intelligence darling NVIDIA Corporation (NASDAQ:NVDA), who is set to report earnings later on Wednesday. Risk-driven assets experienced heightened volatility around Nvidia’s earnings for the past three quarters, as investors sought more cues on the AI industry and chip demand.
Dollar recovery, yield stability pressure metal prices
Broader metal prices moved in a flat-to-low range on Wednesday, coming under pressure from a recovery in the dollar as Trump’s tariff delay helped spur some confidence in the U.S. economy.
This was also reflected in somewhat steadier Treasury yields, which rose sharply over the past two weeks amid heightened concerns over U.S. fiscal health. Focus remained on the progress of a tax cut bill through Congress.
Among precious metals, platinum futures fell 0.1% to $1,079.85/oz, while silver futures rose 0.3% to $33.413/oz.
Among industrial metals, benchmark copper futures on the London Metal Exchange fell 0.2% to $9,584.90 a ton, while U.S. copper futures fell 0.7% to $4.7103 a pound.